Havana Cuba. – Once again, the Castro government did not inform public opinion about the funds allocated to the Armed forces and to Ministry of Interior.
During the presentation of the budget for the upcoming 2023, the Minister of Finance and Prices, Meisi Bolaños, emphasized the intention of reducing the fiscal deficit of the Cuban economy. The official announced that the current 2022 is expected to end with a deficit of 75,827 million pesos (figure with which expenses exceed income).
Bolaños asserted that for the 2023 budget a deficit of 68,126 million pesos is planned, approximately 7,701 million pesos less than what he expects to report for the previous year. And from the minister’s speech before the deputies of the National Assembly of People’s Power, it can be inferred that the reduction of the deficit will try to be achieved through an increase in income, and not through a reduction in expenses.
This additional income that the budget needs is intended to be obtained, to a large extent, by an increase in taxes to be paid by non-state actors in the economy.
In the parliamentary meeting itself, it was revealed that the tax exemption for MSMEs was without effect for a period of six months when they arise from a reconversion, and one year when they are newly created. A minimum value of income will also be defined that the self-employed must write down in their affidavits of personal income. Another measure of pressure against the self-employed is to apply a single tax regime. In other words, there will no longer be a general regime or a simplified regime. From now on, everyone must pay taxes equally, to the detriment of those of the old simplified regime, who paid less taxes.
On the other hand, with great fanfare, the official announced high budget allocations (expenses) to guarantee the functioning of the health, education, culture, sports, as well as assistance and social security sectors. For all of them, expenses amounting to 251,222 million pesos are allocated, which means 72% of the total expenses planned in the budget.
However, and once again, the Cuban rulers do not provide any information about an item of expenses that specialists estimate to be very important for the Island: the money assigned to the Armed Forces, the Ministry of the Interior, the budgeted units, the loss-making business entities, as well as the rest of the bureaucratic machinery that the regime cannot do without.
We must bear in mind the expenses of the large number of educational centers that the FAR and MININT have, and the funds that are surely destined to institutions such as State Security and Military Counterintelligence. These are funds that are not declared to public opinion, and therefore it is not difficult to imagine that they become uncontrollable.
If there were the will to reduce the expenses assigned to this military sphere, which in short all it does is contribute to the maintenance of a regime that violates civil liberties and impedes the advancement of the nation, the fiscal deficit could be reduced without need to increase the tax burden on the members of MSMEs and self-employed workers, because if they are allowed to work, they can contribute to the economic takeoff of the Island.
But, unfortunately, that will is not present in the Cuban ruling class. If it existed, it is almost certain that the country would not be facing the vicissitudes that today overwhelm Cubans.
OPINION ARTICLE
The opinions expressed in this article are the sole responsibility of the person who issues them and do not necessarily represent the opinion of CubaNet.
Receive information from CubaNet on your cell phone through WhatsApp. Send us a message with the word “CUBA” on the phone +525545038831, You can also subscribe to our electronic newsletter by giving click here.
